Abbey shares recommended

SHARES in home builder Abbey are being recommended as a buy, with a 16% prospective upside over the next 12 months, in advance of the release of its latest results next week.

Stockbrokers Dolmen Securities say the results for the six months to the end of January are likely to be strong, when they are revealed next Friday, given recent trading updates by British home builder peers.

"We are forecasting profit before tax and earnings per share of 19m and 41c respectively, year on year increases of 30% and 32%. Demand in Abbey's main market, Britain, remains robust, driven by low interest and high employment rates," said analyst Stuart Draper. Mr Draper says these results could act as a catalyst for the share price as, in recent years, Abbey's share price has frequently performed well around the time of good results.